The Manufacturing PMI for the eurozone in May was 47.4, compared to 45.7 points the previous month. The reading was better than the forecast of 46.2. The industrial sector finally showed some signs of emerging from the crisis, with a slowdown in the decline of new orders.
In Germany, the Manufacturing PMI rose to 45.4 from 42.5 points in April. The index returned to levels seen at the beginning of the year when it seemed that the worst was over for German industry, signaling a slow recovery in activity in this sector.
The services sector maintained its strength in May. The PMI for the eurozone services sector was 53.3, the same as the previous month. Market consensus expected a slight increase to 53.6, but this difference is insignificant as the index remained at a high level for another month. The services sector is in significantly better condition than manufacturing, with recovery ongoing for several months.
The composite PMI was 52.3 compared to 51.7 the previous month. The index has been above the 50-point mark for three months. This month, the relatively positive reading from the manufacturing sector finally joined the strong services sector, possibly indicating the first signs of the anticipated recovery.
Bartosz Wałecki, Analyst at Michael / Ström Brokerage House
